New Majesco Report Highlights an Ever-Widening Gap Between Insurance Leaders Taking Action and Those Who Are Not
April 20 2017 - 4:30PM
Business Wire
In a world of rapid change, the gap will at
some point become unsurmountable
Majesco (NYSE MKT:MJCO), a global provider of core insurance
software and consulting services for insurance business
transformation, today published the second annual strategic
priorities primary research report, Strategic Priorities 2017 –
Knowing vs. Doing. The report addresses to key questions: Are we
acting upon our knowledge of the insurance industry and market
trends? Or, are we simply educated observers?
The answers to these two questions form the crux of Majesco’s
second annual Strategic Priorities survey. The responses to the
survey reflect an awareness of the pace of change that is unfolding
unheralded challenges and opportunities. Unfortunately, turning
awareness into doing, with actionable initiatives, is elusive,
creating an ever-widening gap between leaders who are taking action
and those who are not.
“In a world of rapid change, the gap between leaders and fast
followers or laggards will at some point become unsurmountable,”
commented Denise Garth, Senior Vice President Strategic Marketing
at Majesco. “The path of least risk will include taking some risks.
The risk to invest in new business models, new products, and new
channels can, at minimum, keep insurers competitive. Even better,
taking these risks could allow insurers to leapfrog the
competition. Because new competition does not play by the
traditional rules of the past, insurers need to be a part of
rewriting the rules for the future. There is less risk in a game
where you write the rules.”
The report links the forces of change identified in Majesco’s
Future Trends 2017: The Shift Gains Momentum report and the
consumer and small-medium business research reports, with the
reality of how insurers are responding, both in terms of planning
as well as doing, highlighting a significant gap. The report notes
that the insurance business models of the past 50+ years have been
based on the business assumptions, products, processes, channels,
and more, for the Silent and Baby Boomer generations. Gen X was the
first to begin to shift, with Millennials and Gen Z putting
tremendous power behind it to move it forward at a rapid pace. The
business models of the past will not meet the needs or expectations
of the future. Unfortunately, those initiatives where insurers are
actually doing something tend to be those that are traditional
areas of priority and understanding, like security, talent and
legacy system replacement rather than those that are
transformational and require new thinking, different approaches and
different business models.
The report also highlights some interesting differences between
the L&A and P&C market segments. The L&A segment has
been relatively slow to change, even seeming to be dormant with
replacing legacy systems. This is in contrast to the P&C
segment, where carriers have been aggressively replacing legacy
systems. Interestingly, it is the L&A segment that seems to be
more attuned to the pace of change and is responding with plans and
action as compared to the P&C segment. This is creating an
interesting industry dynamic.
Those that adapt quickly will likely see new business heights,
contrasted to a potential death spiral among those who do not
adapt. This is reinforced in an “early trend” that highlights
higher growth potential for those focused on innovative areas.
Companies that reported strong growth in the past year were up to
17 times more likely to be actively engaged in innovative growth
activities, compared to those that had lower growth. If the growth
gap creates a wide enough chasm, devastating business results will
be seen, in similar fashion to what we have witnessed with
organizations such as Sears, Blockbuster, Macy’s, and others.
The new thought leadership paper, Strategic Priorities 2017 –
Knowing vs. Doing, is available on the Majesco website to download,
or you can request a copy via email, info@majesco.com.
About Majesco
Insurance business transformation is a journey of change and
revitalization, a renaissance of Insurance. Approximately 150
insurance companies worldwide in P&C, L&A and Group/
Employee Benefits are transforming their businesses with Majesco’s
solutions. Our market leading software and consulting services
uniquely underpin the entire insurance value chain and are designed
to empower insurers with the agility, innovation and speed needed
to meet their transformation opportunities. Majesco’s solutions
include policy management, new business / underwriting, rating,
billing, claims management, distribution management, BI/ analytics,
predictive modeling, digital platform with mobile and portal,
testing services, cloud services, bureau and content services,
transformation services, consulting services and more. For more
details on Majesco, please
visit www.majesco.com.
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MajescoAshwin Rodrigues, +1-973-461-9087Director — Global
Marketingashwin.rodrigues@majesco.com
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